SBH · Intrinsic value
Is Sally Beauty Holdings, Inc. (SBH) overvalued or undervalued?
Sally Beauty Holdings, Inc. (SBH) trades at the delayed market price of $16.83 a share. That price already implies revenue growth of −12.6% a year for 5 years. TickerWorth's fair value is $38.49 a share (priced within our range of $16.22 – $50.35). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is SBH fairly valued?
- Fair value
- $38.49
- Market price
- $16.83
- Upside to fair value
- +128.7%
- Verdict
- Priced within our range of $16.22 – $50.35
Reverse DCF: Today's price implies revenue growth of −12.6% a year for 5 years; our model assumes 1.8% a year on average over the same horizon.
What is SBH's TickerWorth Score?
Cheap against our estimate — but a weaker business
Compared with Consumer Cyclical companies in US
Its strongest point: looks cheap on the numbers. Its weakest: growth is slow or negative.
- Value · 86 of 100
Cheaper than 86% of Consumer Cyclical companies in US
- Price vs worth · 100 of 100
- Quality · 53 of 100
More profitable than 53% of Consumer Cyclical companies in US
- Financial health · 44 of 100
Financially stronger than 44% of Consumer Cyclical companies in US
- Growth · 39 of 100
Growing faster than 39% of Consumer Cyclical companies in US
- Momentum · 87 of 100
Outperformed 87% of Consumer Cyclical companies in US over the past year
Confidence: High confidence · Scored
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SBH DCF valuation, input by input
TickerWorth's fair value for Sally Beauty Holdings, Inc. (SBH) is $38.49 a share, against the delayed market price of $16.83 (priced within our range of $16.22 – $50.35). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values SBH at about $39.17 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Sally Beauty Holdings, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 7.8%, with a long-run terminal growth rate of 2.5%. About 78% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -12.6% annual revenue growth for SBH. Our base case instead compounds to about 1.8% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SBH's modeled DCF value ranges from about $25.41 to $77.25 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Sally Beauty Holdings, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SBH's intrinsic value. Figures update as new filings and prices come in.
Every input behind SBH's DCF
| Input | Value |
|---|---|
| Base-year revenueSALLY BEAUTY HOLDINGS, INC. FY2025 10-K (accession 0001193125-25-280122): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $3,701,420,000 |
| Base EBIT marginSALLY BEAUTY HOLDINGS, INC. FY2025 10-K (accession 0001193125-25-280122): us-gaap:OperatingIncomeLoss 327,810,000 / revenue 3,701,424,000 = 8.86%, FY2025. | 8.9% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | -0% → 1% → 2% → 3% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.03 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesSALLY BEAUTY HOLDINGS, INC. FY2025 10-K (accession 0001193125-25-280122): WeightedAverageNumberOfDilutedSharesOutstanding = 103,821,000 shares, FY2025. | 104M |
| Market priceDelayed quote · as of 2026-10-19 13:42 UTC | $16.83 |
Change SBH's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Sally Beauty Holdings, Inc. do?
What does it do?
Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. It operates in the Specialty Retail industry (Consumer Cyclical sector), headquartered in United States. The company employs roughly 11,000 people.
How does it make money?
The business turns $3.7B in annual revenue into profit. Out of every $100 of sales, about $9 is left as operating profit (operating margin of 9.3%), after a 52% gross margin on the products/services it sells. After all costs, taxes and interest, 5.2% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries moderate debt (1.7× equity), comfortably covers its short-term bills (2.4× current ratio), and is currently profitable.
Who at SBH filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Platz Marlo Michelle Cormier | Former SVP & CFO | Option exercise | $282,008.16 | Form 4 for Platz Marlo Michelle Cormier (opens sec.gov in a new tab) | |
| Platz Marlo Michelle Cormier | Former SVP & CFO | Option exercise | $138,379.66 | Form 4 for Platz Marlo Michelle Cormier (opens sec.gov in a new tab) | |
| Platz Marlo Michelle Cormier | Former SVP & CFO | Open-market sale | $543,191.70 | Form 4 for Platz Marlo Michelle Cormier (opens sec.gov in a new tab) | |
| Cox Erin Nealy | Director | Option exercise | — | Form 4 for Cox Erin Nealy (opens sec.gov in a new tab) | |
| Bishop Rachel Rothe | Director | Option exercise | — | Form 4 for Bishop Rachel Rothe (opens sec.gov in a new tab) | |
| BOYER JEFFREY N | Director | Option exercise | — | Form 4 for BOYER JEFFREY N (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is SBH's intrinsic value?
TickerWorth's blended fair value for Sally Beauty Holdings, Inc. (SBH) is $38.49 per share, versus a market price of $16.83 (priced within our range of $16.22 – $50.35).
Is SBH overvalued or undervalued?
Priced within our range of $16.22 – $50.35 at $16.83. We don't call SBH overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for SBH?
A WACC of 7.8% and a terminal growth rate of 2.5%.
Is Sally Beauty stock undervalued?
TickerWorth's fair value for Sally Beauty Holdings, Inc. (SBH) is $38.49 against a market price of $16.83. Our read: Priced within our range of $16.22 – $50.35. This is a model estimate, not investment advice.
Sally Beauty (SBH) DCF valuation and fair value
Our fair value for Sally Beauty Holdings, Inc. (SBH) is $38.49, built on a 7.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Sally Beauty stock?
Today's price implies revenue growth of −12.6% a year for 5 years; our model assumes 1.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $16.83. A model estimate, not investment advice.
Sally Beauty (SBH) insider trading
The most recent insider filing (SEC Form 4) for Sally Beauty Holdings, Inc. (SBH): Platz Marlo Michelle Cormier, Former SVP & CFO, option exercise on 2026-06-08. The latest filings are listed on this page. A disclosure, not a signal to trade.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.